Fewest Americans Earning Minimum Wage Since 2008

States outlined in blue have minimum wage higher than the federal level.

The number of Americans earning the federal minimum wage or less last year fell to the lowest level since 2008, reflecting both broader wage growth and an increasing number of states setting their higher levels.

Last year, 3.3 million U.S. workers were paid the federal minimum of $7.25 per hour or less, a recent report from Labor Department said.

That represented 4.3% of all hourly workers. The share is down from 4.7% in 2012 and the smallest since 3.0% in 2008, when the last nationwide wage increase was being phased in.

The share of hourly laborers earning the lowest pay has trended down significantly in recent decades. In 1980, almost one in six hourly workers was paid at or below the prevailing federal minimum. Last year, just one in 25 earned minimum wage or less.

The declining faction of minimum wage earners in part shows that average hourly earnings have grown faster than the minimum wage since the early 1980s. In recent years, states setting minimum wages above the federal level has driven the decline. As of January, 21 states had minimums above the federal level.

The states with the smallest portion of hourly workers earning the federal minimum wage, Washington, California and Oregon, all have state minimums well above the federal standard. While states with the highest share—Tennessee at 7.4% and Idaho at 7.1%–are among those in line with federal wage.

Other highlights of the Labor Department’s report:

-The number of Americans earning the federal minimum wage or less last year fell 7% from 2012 and was at the lowest level since 2.2 million in 2008.

-Of those workers, 50.4% were younger than 25 and 62.4% were women.

–Last year, 35.5% of minimum wage employees worked full time, compared to 72.9% of all hourly workers.

–The food service industry employed 46.7% of all workers earning the minimum wage or less.

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